Genuine Hands-Off Income in Connected Suburb

An Auckland city-fringe commercial property investment opportunity that is a scarcity in today’s market is expected to resonate with investors seeking resilient hands-off income, supported by substantial improvements and long‑term security.

The lessor’s freehold interest in a circa-2,047sqm freehold Business – Mixed Use zoned landholding, located directly opposite the Mt Albert Train Station and handy to Mt Albert village, is now for sale.

The site at 22B Willcott Street, Mount Albert is subject to a 20year ground lease from 2018, providing a stable and predictable income stream with current annual ground rent of $225,000 plus GST payable by the lessee. The lease provides five-yearly market rent reviews, with the next review scheduled for 2028, and one remaining 20-year right of renewal extending the potential final expiry to 2058.

Significant improvements on the site include the conversion of the majority of the warehouse-style building into a privately owned, preschool licensed for 90 children, with the balance utilised as high-stud warehouse storage and workrooms.

These improvements, along with the business goodwill attached to the childcare operation, reinforce the long-term value proposition for the incoming ground lessor.

The opportunity is being marketed by Damien Bullick and Alan Haydock of Bayleys Auckland Metro team, with tenders closing on Tuesday 28 July, unless sold prior.

Bullick says the purchaser will simply collect ground rent from the lessee with no obligation to maintain, upgrade, or insure the buildings, with the strength of the improvements and strategic location underpinning tenure stability and reinforcing the value of the landholding.

“These assets are regarded as the market’s golden goose by delivering genuinely passive, set-and-forget income.

“The property’s position in one of Auckland’s most strategically connected city-fringe suburbs is a clear advantage, and this is further strengthened by the lessee’s business, with early childhood education widely regarded as a defensive, needs-based sector that is on the rise.”

All improvements sit with the lessee, yet the structure carries built-in future upside for the lessor should the lessee forgo its 2038 renewal.

As a high-growth, well-connected suburb benefiting from nearby major public transport infrastructure and ongoing urban intensification, Mt Albert is a popular investment location, servicing a large residential catchment. Mt Albert Village is home to a diverse mix of cafés, restaurants, and retail supported by streamlined transport links, including the Mt Albert Train Station which is a key transit point on the northwestern line, New North Road bus routes, and quick access to the NorthWestern Motorway.

Haydock says the Business – Mixed Use zoning provides future optionality, enabling residential, commercial, or mixed‑use development up to 18 metres under current guidelines.

“It also has future intensification potential under the Auckland Unitary Plan, with moves to consolidate higher-density housing near transit stations, potentially resulting in building heights up to 24m.

“The site is also positioned near significant regeneration projects, including the government’s plan to deliver 4,000 new homes on land acquired from Unitec’s Mt Albert campus, approximately 500 metres away.”